Record Keeping Chapter 9 Record Keeping for Accounts Receivable Clerks

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Record Keeping Chapter 9Record Keeping for
Accounts Receivable Clerks

• Jobs 43-48

Chapter 9
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• Record Keeping for Accounts Receivable
  ClerksGrades for Chapter 9
• Class work is 40 of overall grade
• Job 43 Class work 10 Points
• Job 44 Class work 10 Points
• Job 45 Class work 10 Points
• Job 46 Class work 10 Points
• Job 47 Class work 10 Points
• Job 48 Class work 10 Points
• Chapter 9 Reinforcement Problem 25 Points
• Quizzes and Tests are 40 of overall grade
• Chapter 9 Open Notes Quiz 25 Points
• Chapter 9 Test 100 Points
• 40Questions Scantron
• 3Problems

Chapter 9

• Jobs 43-48

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Record Keeping for Accounts Receivable Clerks

• Wholesalers are business that sell in large
  quantities to retailers.
• Orders may be taken by mail, phone, fax, online
  or by a salesperson.
• Original record of sale is recorded on a form
  call the Sales Order.
• Most sales for wholesalers are credit sales.
  Retailers buy now and pay later for them.
• Accounts Receivable Clerks must keep track of
  these of records.

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What will we be learning in this chapter?

• Who are Wholesalers , Retailers and Consumers?
• Last chapter we covered sales from retailers to
  consumers. This chapter we will cover sales from
  wholesalers to retailers.
• How to keep A/R records for a wholesale business
  and how prepare a schedule of A/R.
• How to use and post a Sales Journal.
• How to use and post a Cash Receipts Journal.
• How to use and post a Sales Returns and
  Allowances Journal.

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Job 9-43Preparing Sales Invoices

• Wholesalers
• Firm that sell merchandise to retailers for
  resale
• Wholesales buy from producers, sell to retailers.
• Retailers sell merchandise directly to the
  consumer

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• Sales Order
• Form on which sale of merchandise is first
  recorded
• Sales Invoice
• Bill
• 7 types of information on a sales invoice
  (covered in sample problempage 343-344)
• Terms-Length of time a customer has to pay
• 30 days is standard
• Due Date-Date invoice should be paid
• You must calculate this date

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Calculating Due Dates

• It is not always easy to find the due date.
• Customer has 30 days to pay.
• Not all bills are sent out on the first of the
  month.
• Not all months have 30 DaysKnuckle method?
• Step 1Take the number of days in the month and
  subtract the date of the invoice.
• Invoice date October 11.
• 31 11 20 days in October
• Step 2Calculate days left over.
• Add 10 days to get to the 30 day term.
• 20 days in October 10 days in November 30
  days total.
• Due date is November 10th.

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Job 43Exercises

• Sample Problem
• Vocabulary
• Problems 43-1, 2

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Job 9-44Keeping Records of Customer Accounts

• Separate accounts are kept for each customer.
  The accounts are kept in a separate book call the
  A/R Ledger.
• Account
• Individual record of a customers purchases,
  returns and payments
• Accounts Receivable Ledger
• A group of customer accounts
• Schedule of Accounts Receivable
• List of customers who owe us money

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Review of Accounts Receivable Accounts

• 3 Column Account Form. What are the 3 columns?
• Debit
• Credit
• Balance (running balance)
• Sales on Account are a DR or CR to A/R?
• DR Debit
• Payments on Account are a DR or CR to A/R?
• CR Credit
• Sales Returns are a DR or CR to A/R?
• CR Credit

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Job 44 Exercises

• Sample Problems
• Vocabulary
• Problems 44-1, 2, 3

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Job 9-45Using Sales Journals

• Sales Journal
• Record of charge sales
• All sales on account are recorded here!
• The process of recording data in a journal is
  called journalizing.
• Accounts Receivable Ledger
• Stores all A/R accounts
• Posting
• Transferring data from one record to another.
• Transferring data from the Sales Journal to the
  A/R Ledger.
• Posting must follow chronological order.

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Six Steps of PostingTransferring from the sales
journal to the A/R Ledger

• Copy the date
• Copy the Sales Invoice Number
• Copy the Journal and Page Number
• Copy the amount
• Calculate new balance
• Copy account number
• Simply go from the left to the right for steps
  1-5.
• Step 6 is showing that you completed steps 1-5.

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Steps To Follow When Using a Sales Journal!

• Journalize the sales on account in the Sales
  Journal.
• Post from the Sales Journal to the each of the
  customers accounts.
• Total the Sales Journal.
• Add the sales and foot the amount column.
• Re-add the column to confirm the total and then
  write it in.
• Write in the word Total in the customers Name
  column and double rule the total.
• Double rule shows that you confirmed the total.

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Job 45 Exercises

• Sample Problem
• Vocabulary
• Problems 45-1, 2, 3, 4, 5

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Job 46Using a Cash Receipts Journal

• In Job 45, we sold merchandise on account to our
  customers.
• The Sales Journal was used to record the sales on
  account transactions.
• On or before the due date of the sales invoice,
  our customers must pay us.
• In Job 46, we will use the Cash Receipts Journal
  to show the receipts of cash from the customers
  we have billed.

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Job 46Using a Cash Receipts Journal

• Cash Receipts Journal
• Records all receipts of cash
• When customers pay us on account, it will be
  recorded in the Cash Receipts Journal.
• Steps To Follow
• Record cash receipt in the Cash Receipts Journal
• Post to the customers account
• Total the Cash Receipts Journal
• Check account balances in the A/R Ledger
• Foot DR and CR columns.
• Subtract.
• Should equal account balance.

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Job 46 Exercises

• Sample Problem
• Vocabulary
• Problems 46-1, 2, 3, 4

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Job 9-47Using Sales and Cash Receipts Journals

• In this job, we will use all 3 records to record
  transactions with customers who buy merchandise
  on account.
• Sales Journal. What do we journalize in the
  Sales Journal?
• Cash Receipts Journal. What do we journalize in
  the Cash Receipts Journal.
• Accounts Receivable Ledger.
• What does a DR represent?
• Which Journal did it come from?
• What does a CR represent?
• Which Journal did it come from?

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Job 9-47Using Sales and Cash Receipts Journals
Sales Invoices
Cash Receipts
Sales Journal
Cash Receipts Journal
Posted as a DR to Customers Account
Posted as a CR to Customers Account
Accounts Receivable Ledger
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Job 47 Exercises

• Sample Problem
• Vocabulary
• Problems 47-1, 2, 3

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Job 9-48 Using a Sales Returns and Allowances
Journal

• Customers occasionally may return merchandise to
  us. It may be damaged or we may have shipped
  them the wrong merchandise.
• Customers occasionally may choose to keep damaged
  or incorrectly shipped merchandise and take a
  reduction in its price.
• Sales Returns
• Merchandise Returned to us by a customer.
• Use a credit memo to record the return of
  merchandise.
• We used Credit Memos in Chapter 8.

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Using a Sales Returns and Allowances
JournalContd

• Sales Allowance
• Reducing the price of damaged goods or
  incorrectly shipped merchandise.
• Use a credit memo.
• This allows the customer to keep the current
  goods and avoid the hassle of handling damaged
  merchandise, shipping, etc.
• An allowance may be given if a customer was
  overcharged.
• An allowance may also allow the customer to keep
  the incorrect merchandise shipped to them wrong
  color, model, etc.
• Overcharge
• Price of an item on the invoice is to high.

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Using a Sales Returns and Allowances
JournalContd

• Sales Returns and Allowances Journal
• Used to journalize (record) all Credit Memos.
• Steps to follow
• Journalize Credit Memo in Sales Returns and
  Allowances Journal.
• Post to the customers account
• Posted as a CR to the customers account.
• This reduces the amount they owe us.
• Total the Sales Returns and Allowances Journal.
• Add the Amount Column and foot the amount.
• Re-add the column to confirm the total and then
  write it in.
• Write in the word Total in the customers Name
  column and double rule the total.
• Double rule shows that you confirmed the total.

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Accounting Records and Source Documents to keep
track of when customers purchase merchandise on
account from us.

• Sales Journal
• Sales Invoices
• Cash Receipts Journal
• Check/Cash
• Sales Returns and Allowances Journal
• Credit Memos

• Accounts Receivable Ledger
• DRs are posted from the SJ
• CRs are posted from the CRJ
• CRs are posted from the SRAJ
• Post in Journal and date order!

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Job 48 Exercises

• Sample Problem
• Vocabulary
• Problems 48 1, 2, 3, 4, 5, 6
• --------------------------------
• Chapter 9 Quiz
• Reinforcement Problem
• Chapter 9 Test